April 27, 2011 / 3:13 PM / 8 years ago

CANADA STOCKS-TSX falls on commodities, election anxiety

*TSX fall 108.24 points, 0.8 pct, to 13,800.86

*All 10 sectors weaker, lead by resources (Updates with details, comments)

By Claire Sibonney

TORONTO, April 27 (Reuters) - Toronto’s main stock index fell to its lowest point in nearly a week on Wednesday morning in a broad-based decline led by weaker commodity shares and uneasiness about the impact of the surge of the left-leaning New Democrats in the lead-up to Canada’s May 2 election.

Among the big decliners, Potash Corp POT.TO tumbled 3.2 percent to C$53.78, Suncor Energy (SU.TO) fell 1.7 percent to C$42.21 and Teck Resources TCKb.TO lost 3.1 percent to C$51.57.

Weighing on the market was a drop in prices for U.S. crude oil, gold and copper ahead of the U.S. Federal Reserve’s interest rate announcement later in the day. [O/R] [GOL/] [MET/L]

Commodity stocks have generally lagged the recent sharp climb in resource prices because of skepticism about how long those high prices can be sustained, said John Kinsey, portfolio manager at Caldwell Securities.

“The economic news worldwide isn’t all that good and I think people are just generally nervous,” he added.

Gold miners reversed early gains, falling 0.4 percent. Barrick Gold Corp (ABX.TO) was down 0.2 percent at C$47.68 despite reporting a 22 percent increase in quarterly profit, driven largely by the surge in bullion prices. [ID:nN27110953]

At 10:41 a.m. (1441 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 108.24 points, or 0.78 percent, at 13,800.86. All of its 10 sectors were down as the index hit its lowest level since April 20.

The jump in the popularity of the New Democratic Party in the polls was also a bit of a downer for investors due to anxiety over the possibility of another minority government being elected after the incumbent Conservatives failed to win majorities in the 2006 and 2008 elections. [ID:nN27115990]

“The Conservatives may get a majority on election day but right now it looks like another minority Conservative government ... nobody wants another election, we’ve had so many, so that’s the discouraging part of it,” Kinsey said.

Canadian National Railway (CNR.TO) rose 0.5 percent to C$71.36 after Canada’s biggest railway raised its earnings forecast for the year as it reported a 31 percent rise in quarterly profit on Tuesday. [ID:nN26287831]

Cenovus Energy (CVE.TO) fell 2.4 percent to C$35.36 after its first-quarter profit plunged 91 percent, missing analysts’ expectations by a wide margin, mainly because of lower oil and natural gas prices. [ID:nL3E7FR24I]

Husky Energy Inc (HSE.TO) added 0.4 percent to C$28.61. Canada’s No. 3 integrated oil company, which is controlled by Hong Kong billionaire Li Ka-shing, said its first-quarter profit rose 70 percent, fueled by increased output and higher crude oil prices. [ID:nL3E7FR33P]

$1=$0.96 Canadian Reporting by Claire Sibonney; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below